The interest rate tail wagged the stock market dog in February. The prospect of still-higher short- and long-term interest rates rattled the stock market.
The 10-Year Treasury bond touched its 2023 low point in yield of 3.39% on February 1, but climbed during the rest of the month and ended at 3.92%. The yield climb translated to a US bond market decline of 2.9% for the month.
By the end of February, intermediate-term bonds had given back most of their January gains.
Concerns about inflation being stickier for longer and rising bond yields weighed on stocks. By the end of the month, the S&P 500 had fallen from its high point of a 9% year-to-date gain in early February back down to a 3.5% year-to-date advance. For the month of February, US stocks slid by about 2.5%.
Below is a summary of February returns.
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